Crypto rises: Bitcoin soars as Donald Trump returns to the White House
Bitcoin hit record highs on Monday, as President-elect Donald Trump, and soon-to-be First Lady-again Melania Trump launched their meme coins, days ahead of the inauguration.
The cryptocurrency leader reached above $108,000(£88,668) for the first time ever on Monday morning, ahead of Trump’s official return to office.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “With the writing on the wall so overwhelmingly pro-crypto as Trump returns to the White House, Bitcoin has surged again in value to a fresh record high.”
This price surge followed the launch of the Trump family’s cryptocurrencies over the weekend, under the names of $TRUMP and $MELANIA.
Both meme coins initially surged dramatically, with the Trumps’ crypto gaining over 18,000 per cent in value within its first 24 hours.
By Saturday afternoon, just hours after its launch, the meme coin’s market capitalisation had boomed to $5.5bn (£4.5bn), reported CoinMarketCap, making it one of the most spoken about digital assets in the world.
He introduced his coin on his social media platform, Truth social, calling it a celebration of “everything we stand for: WINNING!”
Melania followed suit on Sunday evening by announcing the launch of her own meme coin on Musk’s X, urging investors to “buy $MELANIA now”.
Her coin diverted attention and market value from Trump’s coin, which fell below $8bn (£6.5bn) at one point as a result.
Both coins have been described as symbolic, rather than financial instruments, having been disclaimed as “not political”, or tied to any campaigns.
Yet, critics have accused the Trumps of using their platforms to profit from market speculation.
Crypto venture capitalist Nick Tomaino called the timing and structure “predatory”, warning that many investors could lose money when the hype fades.
Meme coins are known for their volatility and lack of stable, intrinsic value, relying on social media buzz for its demand.
Some praised Trump for embracing digital currencies, seeing it as a broader sign that his incoming administration, from Monday, will be pro-crypto.
This follows his promise to make the US the “crypto capital of the planet” during his presidential campaign.
Streeter deemed this as a “sign that Trump’s pledge to make the US the Bitcoin capital of the world will be honoured. “
Others saw this move as undermining crypto’s credibility.
“Meme coins like this are a distraction and a setback for serious crypto projects”, said Rob Hadick, partner at Dragonfly Capital.
The timing of both launches also raised questions about their purpose, raising accusations of profiteering, with critics suggesting the ventures were designed to capitalise on the President’s return to power.
Streeter, however, warned investors: “Although institutional interest and expected changes in regulation are adding more legitimacy, it’s still a highly volatile asset and has a history of dropping sharply after steep climbs.”